GEORGE TOWN, May 23 — The concession agreement for the controversial Sri Tanjung Pinang II (STP2) land reclamation project was signed in 1990, said Penang Chief Minister Lim Guan Eng (DAP — Air Putih).

In his winding-up speech at the state legislative assembly this morning, Lim said the current Pakatan Rakyat (PR) administration was bound by the deal signed by the Barisan Nasional (BN) government despite the mounting resistance.

“Whether we like it or not, we are subject to the law and the conditions from the agreement signed long ago,” he said.

He was responding to backbencher Yap Soo Huey (DAP — Pulau Tikus) who had raised doubts on the feasibility of the project, which she termed as “high risk” to the people of Penang.

“If we look at it from a financial angle, it is impossible to cancel such a massive project — it covers a total 760 acres (307.5 hectares) — do you know how much we will need to pay compensation for this?” Lim asked.

Yap then asked whether the existing deal had provisions to block the project if there were negative effects on the environment.

Lim said the matter was not clear-cut as the state would need proof from the Environment Department to show harm from the project.

“We can’t cancel the project without any concrete proof of any negative impact from it,” he said.

Known as by its STP2 initials, the project involves the reclamation of 760 acres of sea bed off the coast near phase one of Sri Tanjung Pinang in Tanjung Tokong here for a mixed-development project.

Local non-governmental organisations (NGOs), particularly the Penang Consumers Association (CAP) and Sahabat Alam Malaysia (SAM), have objected to the project, claiming severe environmental and social impact.

Penang Forum, a coalition of various Penang-based NGOs, has also voiced concern over the project, but limited this to cautioning the state to study the project thoroughly.

“Those individuals who objected against the project, are they willing to come out and bear the costs if we cancel the project and have to pay compensation?” Lim asked today.

He added that the state is equally concerned over the impact of the project, and is looking to mitigate and improve upon the agreement to ensure all works conducted meet all environmental requirements.